would like second opinion on rental income vs expense on property

2 Replies

Too little info to tell.  You need to know what rentals go for in the area first of all.  I don't trust what zillow says as 100% accurate.  Their cost estimate for the mortgage is way different than the one I came up with.  Keep in mind that is with 20% down.  You have to be careful with townhouses and Condos not all of them allow rentals.  I ran into that a few years ago.  All the new builds in my area did not allow any rentals.

Electricity and Water/Sewer are 2 expenses you will have to pay.

I came up with 1122 and that doesn't include the 2 things above.  

One other thing to keep in mind is when you purchase this and turn it into a rental your property taxes will go up slightly.  Once you factor in vacancy, PM along with other expenses it will cash flow a lot less than you think.  But again that will be determined by what it rents for.    If you don't have 20 percent to put down I would say you should pass.

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